Startups Stack Exchange Archive

What is a reason that many IT companies are located in USA (especially in Silicon Valley) ?
Is it because of the taxation system in USA, special promotion from government or something else?

I’ve also noticed that many IT companies move to United States.

Answer 4190

It is not for tax reasons! The US has a very high tax rate compared to many other countries, or at best about the same tax rate.

There is a lot of programming talent in the US, but is it a combination of many different skill sets that are located in NY/SF including design, marketing, and most importantly close access to funding.

US investors prefer investing within the US due to additional tax burdens investing overseas so having a US based company can raise funds more cheaply and can work closely with investors. Follow the money and that’s where companies will be located which is a big reason why NY is growing its tech scene again.


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